FT MarketWatch

Capital Asset Pricing Model

CAPM. An Economic model for valuing stocks by relating Risk and expected return. Based on the idea that investors Demand additional Expected return (called the Risk premium) if asked to Accept additional risk.

Related Terms: 11 Ask, Accept, Base, Call, Demand, Economic, Expected return, Mode, Return, Risk, Risk premium
Other Related Pages: Category: Stocks Starting With: C
Additional Related Terms: 10-K, 19c3 stock, Allowance for depreciation, Average accounting return, American Stock Exchange, Amortization of premium, Ask, Asked price, At par, All or any part